
FAQ
​Who needs to file boi reporting?
Your business may be required to file a BOI report if it is: a corporation, limited liability company (LLC), or other business entity that is registered with the Illinois Secretary of State's Department of Business Services; OR.
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What happens if you don't file boi?
Civil Penalties: For each day your report is late, you could be fined up to $591. This daily penalty accumulates quickly, creating a substantial financial burden. Criminal Penalties: More severe consequences include up to two years of imprisonment and a fine of up to $10,000.
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How often should I file a boi report?
A Beneficial Ownership Information (BOI) report generally only needs to be filed once, unless there are changes to the information about the company or its beneficial owners, in which case an updated report must be filed within 30 days of the change; it is not an annual requirement.
Is a 501c3 exempt from boi reporting?
Nonprofits that qualify for tax exemption under Section 501(c) of the Internal Revenue Code are exempt from BOI reporting. This includes charitable, scientific, educational, and social welfare organizations.
Charitable trusts
Charitable trusts described in Section 4947(a)(1) of the Code are exempt from BOI reporting.
Split-interest trusts
Split-interest trusts described in Section 4947(a)(2) of the Code are exempt from BOI reporting.
Political organizations
Political organizations that are exempt from tax under Section 527(a) of the Code are exempt from BOI reporting.
Nonprofits that are not tax-exempt, or that lose their tax-exempt status within 180 days, are considered reporting companies and must submit a BOI report.
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What is a nonprofit organization and its examples?
A nonprofit organization is dedicated to furthering religious, scientific, charitable, educational, literary, public safety, or cruelty-prevention causes. Examples include hospitals, universities, national charities, churches, and foundations.
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What are the advantages of a nonprofit organization?
Nonprofits work for the public good and enjoy tax-exempt status. Directors, officers, and members are protected from personal liability.
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When should Form 990 be filed?
When is Form 990 due? Form 990 is due on the 15th day of the 5th month following the end of the organization's taxable year. For organizations on a calendar year, the Form 990 is due on May 15th of the following year
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What is the difference between a gift in kind and a donation?
In-kind donations are non-monetary contributions, meaning goods or services offered for free or at less than the usual amount. Likewise, when a person or entity pays for services on Children's Health behalf, the payment is an in-kind contribution.
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What is the functional approach in accounting?
It focuses on providing more specific insights into various business activities by grouping costs based on their business functions, such as production, administration, sales, and research & development. For instance, in functional accounting, costs are not just classified as direct costs and indirect costs.
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What are the four basic principles of GAAP?
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The Cost Principle. The first principle of GAAP is 'cost'. ...
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The Revenues Principle. The second principle of GAAP is 'revenues'. ...
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The Matching Principle. The third principle of GAAP is 'matching'. ...
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The Disclosure Principle. ...
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Why are GAAP Principles important?
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How do I become MBE certified?
To qualify for Minority Business Enterprise (MBE) certification, you must be a U.S. citizen, have at least 51% minority ownership, operate in the U.S., and have minority management and daily operations.
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Who qualifies as a minority?
United States citizens who are African-American, Hispanic-American, Native American, Asian-Pacific American, and Asian-Indian American.
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What are the benefits of being a woman-owned business?
Official certification as a Woman-Owned Business can lead to government and large corporation contracts, providing reliable income sources.
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What is the purpose of an LLC and how does it work?
A Limited Liability Company (LLC) offers liability protection for members and managers and pass-through taxation.
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Do I really need an LLC?
An LLC isn't mandatory but provides personal liability protection and a formal business structure.
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What are the disadvantages of an LLC?
LLCs may incur higher costs, taxes, additional record-keeping, and separate banking.
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How do LLC owners get paid?
Owners take money from LLC profits as owner's draws, not salaries.
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Does my LLC need insurance?
While an LLC provides some protection, liability insurance is still beneficial.
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How long does it take for a grant to be approved?
Grant approval typically takes three to six months from application submission.
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What is a good grant writing success rate?
A success rate of 50-60% is achievable with professional grant writing skills and organizational readiness.
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How should you evaluate RFP responses?
Craft scoring criteria, assign values, involve multiple evaluators, and award the contract to the highest-scoring vendor.
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How can I confirm if a nonprofit is registered and tax-exempt?
Check with the state agency where it's incorporated and with the IRS for tax-exempt status. Use tools like EO Select Check, GuideStar, or Citizen Audit.
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What is the difference between a “nonprofit” and an “NGO”?
“Nonprofit” refers to organizations structured as nonprofit corporations in the U.S., while “NGO” typically refers to charitable nonprofits operating outside the U.S.
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What should a gift acknowledgment include?
Acknowledge tax-exempt status, describe donated items, note the receipt date, and mention if any goods or services were provided in exchange.
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